The Central propositions of dependency theory.
INTRODUCTION
According to Viotti and Kauppi(2013) Dependency theory of development is
an international relations theory that examines the relationships and
interactions often between Global North and Global South states, where the
Global South states are often reliance on the Global North for trade.
Dependency is an explanation of the economic development of a state in terms of
external influences- political, economic and cultural on national development
policies (Sunkel.O 1969). Also, According to Dos Santos (1971) Dependency is an
historical condition which shapes a certain structure of the world economy such
that it favors some countries to the detriments of others and limits the
development possibilities of the subordinate economic a situation in which the
economy of a certain group of a countries is conditioned by the development and
expansion of another economic to which their own is subjected.
Dependency as a
system is comprised of twin sets of states in the opinion of Ferrara, described
as a dominant or dependent, center or periphery or metropolitan or satellite.
The dominant states are the advanced industrial nations in
the Organization of Economic Cooperation and Development (OECD). Also Dependent
states are those states are those states in Latin America, Asia and Africa
which have low per capital GDP and which rely heavily on the export of a single
commodity for foreign exchange earnings.
.
The Central
propositions of dependency theory.
- Underdevelopment is a condition
fundamentally different from underdevelopment
- The distinction between
underdevelopment and underdevelopment places the poorer countries of the
world is a profoundly different historical context.
- Dependency theory suggests that
alternative uses of resources are preferable to the resources usage
patterns imposed by dominant states.
- The predicting proposition can
be amplified: dependency theorists rely upon a belief that there exists a
clear national economic interest which can articulated from each country.
- The diversion of resources
overtime is maintained not by only by the power of dominant states, but
also through the power of elites in the dependent states.
The policy implications of Dependency analysis.
- The success of the advanced
industrial economics does not serve as a model for the currently
developing economies.
- Dependency theory reradiates the
central distributive mechanism of the neoclassical model, what is usually
called trickle down economics.
- Since the market only rewards
productivity dependency theorists discount aggregate measures of economic
growth such as the GOP or trade indices.
- Dependent states, therefore,
should attempt to persue policies of self reliance.
Importance of Dependency theory
- It emphasis on the analysis of
both the historical process and social economic political cultural factory
of development and underdevelopment.
Limitations of Dependency Theory
Some of Major limitations of dependency theory in
international policies are as follows:
- Lack of unity among dependency
theorists
- Advocacy of radicalism and
socialism
- No clear definition of
dependency
- Negative approach. Dependency
theory concentrate more on discussing the defects of world capitalism and
less upon the way and means for ending dependency under the developed
countries.
- Failure to define the concept of
unequal exchange.
Relevance of dependency
theory to the present society.
- Increasing globalization, which
appears an inevitable social condition and process has pointed out to the
interconnected nature of the world today. Never has there been so much
flow of capital, finances, goods, people, ideas and so on.
- Both theory view the problems of
underdevelopment and development within a global context, as
interconnected economic, political and social processes.
- The economic divide and income
gap between industrialized countries and developing countries has widened
continually.
REFERENCES
Dos Santos.T(1969) The structure of dependence; The
American economic Review.
Viotti & Kauppi
(2013). International Relations and World
politics, George town University.
Sunkel.O (1969). National development policy and external
dependence in Latin America
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